Team News Riveting
Raipur, August 8
The ferro alloys expansion plan of Sarda Energy and Minerals Limited (SEML) arm in Vizag is progressing ahead of schedule and the company eyes to start the third furnace in the third quarter of current financial year.
“Work on the ferro alloys expansion project at Vizag is progressing ahead of schedule. And we expect to start the third furnace in the next quarter (between October and December) against scheduled commissioning of March 2023,” Pankaj Sarda, Joint Managing Director of SEML, said at a post earning conference call
Sarda Metals & Alloys Limited (SMAL), a wholly owned subsidiary of SEML, operates a 2 x 33 MVA Ferro Alloys plant with a Two Star Export House status. The company is adding one more furnace of 36 MVA for manufacturing Mn based alloys at its existing facility at an estimated project cost of Rs 135 crore. Post completion of the capex the production capacity of the company for Manganese based alloys shall increase by 50,000 MT P.A.
Referring to the ongoing projects, he said the government has approved mining plans of the company for mining of Shahpur West Coal Mine in Madhya Pradesh and for increase in the mining capacity of Gare Palma Mine from 1.2 million tons to 1.8 million tons. The process of environmental clearance is going on, Pankaj Sarda added.
Construction work at the 25 megawatt Rehar Hydro Power project in Sarguja of Chhattisgarh is progressing as per schedule. The company expects to complete the project before the end of financial year 2024-25.
Shahpur coal mine is an underground coal mine and the grade of coal there is very, very good, Pankaj Sarda said. “We can bring it for captive use as well or if the prices there, if we fetch a better price, we can sell it across also from Madhya Pradesh itself. So, it will depend on the coal pricing, etc., during that time,” he added.
Manish Sarda, SEML Deputy Managing Director, elaborated on the company’s coal plan and said, “We have 1.2 million tons capacity of our coal mines in the current situation and we also have our own washeries. So, what we are trying to do is maximize our captive consumption so that we are insulated from price shocks of the imported as well as market-driven coal pricing.”
But still, the company would be required to buy coal from outside. Manish Sarda explained, it is required because in some places there is a requirement of high-grade coal in plants. So, for that they have to buy. “Our Vizag power plant (80 Mw capacity) is designed on Indonesian coal. We are utilizing some of our coal from our coal mine from Raigarh to the Vizag plant. Since 100 per cent utilization will not happen, we have to buy from outside,” he added.
